Study of Distribution Flow

SUBMITTED BY – GROUP 9

SOMIL JOSHI (08PGDM113)

PRAKHAR SINGH (08PGDM100)
PRAJITH V M (08PGDM099)
VARUN S PILLA (08PGDM119)
TARUN GUPTA (08PGDM118)
RAKESH M (08PGDM043)
Bata India Limited

SEMI-DURABLE GOODS
Manufacturing
 Distribution Base

North -
Faridabad
Distributor

East – Kolkata
Distributor
West -
Thane
Distributo
r

South - Bangalore
Distributor
Bata Sub-Distributors
Delhi – Retail Network
Distribution Channel- Corporate VMS

(Non-
(Exclusive) exclusive)
BATA BATA
Distributio Distributio
n Channel n Channel
Retail Structure – Company Owned
 Other Facts

Company maintains two different companies

 Bata Properties Limited (100% subsidiary)
 Dealers, Owners, Investors of Land and building etc
 Costal commercial Exim Ltd.
 Exports, Imports, Buyers, Traders, Suppliers, Merchants etc
Repair cost borne by the retailer for both the
channels
Company considers 1% defect rate and maintains the
repair costs in the margins of the retailer
 Bata Dealer Requirements

 Bata - Basic Requirements

 Availability of location in major semi-urban/ urban centres with at least 30,000 inhabitants or
in major shopping centres.
 Selling area of at least 500 sq. ft. fro half dealership or 1,000 sq. ft. for full dealership.
 Start-up investment/ capital of minimum RM50,000.00
 Adherence to terms and conditions of dealership such as payment terms and follow strict pricing
policy.
 Bata - Special Services
 Site and store evaluation, competitive analysis and turnover forecast.
 Profitability calculation and feasibility.
 Store design, layout, furniture and fittings will be provided by Bata on a cost sharing basis.
 Sales tracking and re-order.
 Full management support for new openings.
 Long term business and management support.
 Bata - General Condition
 Exclusive selling areas dedicated to Bata products only.
 Management training will be provided.
 Point of Purchase (P.O.P) materials will be provided free of charge.
 DSP van/ artist assist in the in-store display of your shop.
 Efficient utilization of Distribution capacity

Bata partnering with Adidas, Reebok, M & B, Lee

Cooper to effectively utilize its distribution channel
capacity
Bata charges a direct commission on MRP
 Adidas – 40% - Footwear / 42% - Apparels
 Reebok – 36%
 M & B – 40%
 Sierra (Lotto) – 42%
 Puma* – 35%
 4th Dimension – Direct Selling

Bata Direct - Bata venturing into Direct Selling

Sale through Catalogs
Sales Force –
 Sales coordinators
 Bata sales consultants
High end products on sale thorough this channel
Another Dimension - Institutional Sales

“Bata Institutional Sales Division is an exclusive division of Bata

India which caters to the requirements of corporate customers
across the country.”

 The Institutional Sales Team customizes footwear solutions to

meet the requirements of various industries – hospitality, aviation,
healthcare, educational and government organizations.
 The Bata Institutional team collaborates with corporate customers
to design exclusive shoe lines under the various international and
national brands - HUSH PUPPIES, MARIE CLAIRE, MOCASSINO,
AMBASSADOR, COMFIT, SCHOLL, QUOVADIS, NORTH STAR,
POWER, which are in line with latest technology and industry
specific, to meet the requirement of the customer.
Reckitt and Benckiser

FMCG
Distribution Network:
Conventional Trade

Conventional Trade: The

trade practice which has been
existent from old times,
where the supplier enjoys a
significant bargaining power
Distribution Network:
Modern Trade

Modern Trade: The new set of

trade practices, which involves
much larger and organized
retailers (like Big Bazaar,
Spencer's, etc), effectively
shifting the bargaining power
into the hands of the retailer
 Functioning of the Channel

• Manufacturing units for different products at different regions of the country

– Dettol is manufactured at Jammu
– Harpic is manufactured at Uttaranchal

• Products from all of these manufacturing units brought to a central warehouse (northern region)

• From Central warehouse to C&FA agents

• C&FA to Distributors

• Distributor – 10 salesmen and 2 merchandisers (numbers fixed by company)

 Salesmen in company terminology called Distributor Sales Representatives (DBSR)
 Company prepares a weekly schedule which mandates the visits of each of these 10 salesmen in the distributor’s territory
 Distributor’s territory is also decided by the company
 Functioning of the Channel

• Reckitt Benckiser works on a before-cash basis

– Payments can be made on a per week basis, even if the sales targets are
set on a per month basis

• All dealings of the distributor are with the C&FA

– Dealer places his order via email
– Payment can be made by either an RTGS fund transfer or a DD
– Carrying costs till goods are placed on shelf of distributor born by C&FA
(including damages)

• Distributor margin 5%
 Functioning of the Channel
Conventional
Trade
• Salesmen travel to the retail points, and procures orders from the retailers

• Orders are then filled in to two software

– Dealer’s own software (keep track of logistics)
– Company software (for real time data for company)

• Dealer software then makes a dispatch summary sheet

– how much
– which product
– which retailer
– what vehicle

• Vehicle goes with a driver, a helper and a salesman

• Damage of goods in transit to retailer born by distributor
• Salesman collects the payment from the retailer
– Either as cash, credit, dd or cheque
– Cash payments get discount of 2.5%
 Functioning of the Channel
Modern Trade
• Organized Retailing

• Absence of Salesmen

• Varied methods of Operation

– Big Bazaar – Central Order
– Spencer’s – Regional Order

• RB’s Area Sales Representative

– Overlooks sales and delivery procedures
– Resolve channel Conflict